Bitcoin’s record run continues after Donald Trump election victory

Bitcoin’s resurrection has been almost as impressive as Donald Trump’s, and has cryptocurrency enthusiasts crowing.

Bitcoin reached record highs this week. Photo-illustration: Dan Kitwood/Getty Images

Bitcoin is back with a bang, surging to record highs on Thursday after a crypto-friendly Trump presidency was confirmed, and some forecasters say bigger gains lie ahead.

The world’s biggest cryptocurrency rose above $US76,000 ($114,000), continuing its 42 per cent climb since early September, and has trebled from lows near $US25,000 less than two years ago.

Other key digital currencies had similar stellar improvements, with Ethereum jumping 18 per cent in one day and Dogecoin, backed by billionaire Trump supporter Elon Musk, rising 27 per cent this week and 140 per cent in the past month.

Bitcoin remains the star of the show, and global crypto giant Binance says it has climbed more than 70 per cent this year, “a surge attributed to a combination of macroeconomic trends and strategic financial innovations - with the US elections as a significant driver behind this rise”.

Elon Musk is a prominent supporter of cryptocurrency and Donald Trump. Picture: Angela Weiss/AFP

“Another important factor is the launch of spot bitcoin exchange traded funds in the US in January, a significant milestone that has amplified institutional participation in the crypto space,” it says.

Binance Australia director of community engagement James Quinn-Kumar said Bitcoin’s ascent to new highs was “a testament to its resilience and appeal as a store of value”.

“The crypto market remains optimistic, as Bitcoin’s role in diversified portfolios continues to expand and gain further acceptance.”

While Bitcoin becomes more mainstream, the global cryptocurrency market remains highly volatile, and many of the smaller coins that crashed in 2021 – including meme investment Dogecoin – are nowhere near their record highs.

Globally-respected wealth giants have divided views. Rich Dad Poor Dad author Robert Kiyoaski has predicted Bitcoin could climb to $US10 million per coin by 2030, while billionaire Warren Buffett famously said in 2022 that he wouldn’t pay $US25 for all the Bitcoin in the world.

IG market analyst Tony Sycamore said Bitcoin was benefiting from “the election of the pro-crypto Donald Trump”.

“As a reminder, Trump has promised to launch a national crypto stockpile, fire (anti-crypto) SEC chair Gary Gensler and look to ensure all future Bitcoin is mined in the US,” he said.

Moomoo Australia market strategist Jessica Amir said some billionaires had suggested young investors add Bitcoin to their asset mixes.

“Investors piled a massive US$4.6 billion into the most popular Bitcoin ETF, iShares Bitcoin Trust, over the past four weeks, expecting wider crypto adoption and weaker regulation from a Trump victory,” she said.

US cryptocurrency specialist and author Troy Harris said Mr Trump had “always been a huge advocate of crypto”.

“With President-Elect Donald Trump winning the US election and a pro-Bitcoin cabinet going in with him, the next 12 months for Bitcoin and crypto will be huge,” he said.

“For too long our government has violated the cardinal rule every Bit-coiner knows by heart: never sell your Bitcoin. Trump has vowed that the USA will keep 100 per cent of all the Bitcoin that the US Government currently holds or acquires into the future.

“We’re also going to potentially see huge price action with the culmination of the next Bitcoin four-year cycle, which is due to hit its next potential high in price by the end of 2025.”

FxPro market analyst Alex Kuptsikevich said charts suggested Bitcoin still had upside potential, while US tech company founder Tim Kravchunovsky said crypto “could still go either way”.

“If everything Trump has promised on the campaign trail comes to pass, there is indeed a good reason to be upbeat about the future of crypto in the US,” he said.

“After the initial euphoria subsides, we will need to see Trump making good on his promises.

Originally published as Bitcoin’s record run continues after Donald Trump election victory